New-age payment systems are redefining payment processing

New-age payment systems are redefining the fundamental business process of monetary transactions in this digital era. Let’s explore…

As businesses continue to shift gears to stay ahead of the competition in this jet age, versatile and reliable payment systems have become a key component for organisations of all sizes. Even small businesses realise the need for a comprehensive solution that enables them to offer their customers multiple payment modes, thus expanding their reach. Further, these systems can enhance operational efficiency and improve customer happiness.

Let's examine the many payment systems modern enterprises, including small businesses, can utilise, such as retail POS systems, QR code payments, and mobile POS solutions.

What is a payment system?

Payment systems enable customer-business transactions by transferring money between parties. They encompass the technology, software, and mechanisms used to accept, process, and settle payments, whether via credit card terminals, mobile apps, or internet payment gateways. Payment systems safeguard and efficiently transfer money, making daily transactions convenient and reliable.

How can small businesses take payments?

Small businesses have moved beyond traditional cash transactions and have embraced relatively modern payment systems. Let’s look at some of the popular payment systems for small businesses:

Credit or debit card payments:

The most prevalent method of payment acceptance is credit/debit card processing. This system enables businesses to process card payments through point-of-sale (POS) terminals, whether in-store or online. Its wide acceptance means that customers, particularly the elderly, are comfortable using a familiar payment system.

Key features

• Universal acceptance: This payment method is indispensable for businesses, as the majority of customers possess a credit or debit card.
• Secure transactions: Payment Card Industry Data Security Standard (PCI DSS) sets the security standards for card payments by ensuring data encryption, among other safety measures.
• Speed and efficiency: The consumer checkout experience is enhanced by the near-instantaneous processing of transactions.

Mobile POS systems:

One of the most flexible payment systems for small businesses, mPOS allows customers to make payments using a mobile device, such as a smartphone or tablet. thereby enabling them to be more flexible and portable. You can take your business with you wherever you go with a mPOS and still provide your customers with the professional, hassle-free payment experience they seek.

Key features:

• Mobility: Mobile POS systems are optimal for organisations that require adaptability. mPOS provides unparalleled convenience, whether you are setting up a temporary stall at a weekend market or providing home delivery services to a customer's doorstep.
• Affordability: Compared to traditional retail POS systems, numerous mobile POS solutions have lower setup costs, making them more cost-effective for small business owners who are operating on a stringent budget.
• Improved customer experience: Using mobile point-of-sale (POS) systems, customers can make payments with just a few taps on their smartphones, thus significantly reducing wait time at checkout. Faster payments lead to happier customers.

Retail POS system

Much like card payments, retail POS systems are tried-and-tested payment systems for small businesses. The integration of inventory management, customer relationship management (CRM), and extensive sales reporting into a single platform is what sets a retail point-of-sale (POS) system apart from a simple payment processing system.

Key features:

• Inventory tracking: Monitoring real-time stock levels facilitates reordering and prevents stockouts.
• Sales reporting: These systems produce reports on daily, weekly, and monthly sales to provide valuable insights into the performance of your business.
• Customer management: By tracking customer preferences, you can design customised promotional campaigns that build loyalty.

QR code payments

QR code payments are becoming more prevalent, particularly in the aftermath of the pandemic. Customers can scan a code and make a payment directly from their mobile devices without risking any contact-led health hazards. These systems also offer multi-layered security to protect customers’ bank and card data.

Key features:

• Contactless convenience: Customers do not have to touch or hand over a card to use a contactless payment device. They only need to scan the code with their phone to finish the purchase. This provides a safe environment for making payments.
• Speed: Transactions happen quickly and easily, which cuts down on checkout times, especially in high-footfall places like weekend grocery markets.
• Security: Payments with QR codes use advanced technology to safeguard customer information.

Which are the best payment systems for small businesses?

Small business owners are always scanning the horizon for solutions that can optimise their investment. Modern payment systems not only provide a seamless payment platform but also add several important services to give a holistic experience to small businesses. Based on their flexibility, affordability, scalability, and security, we have shortlisted the best payment systems for small businesses in the UK.

Wonderful

Wonderful presents a wide array of payment solutions, featuring mobile POS, online payment systems, and QR code payments, thoughtfully designed for small businesses. Renowned for its intuitive interfaces and robust security, Wonderful empowers small businesses to thrive by offering adaptable, cost-effective, and credible payment solutions. It seamlessly integrates with your legacy system, providing a smooth checkout experience both in-store and online. Its flat fee model is ideal for small businesses looking to scale up in the near future.

Square

Square offers multiple alternatives to small businesses, making them a popular choice among business owners in the UK. Apart from an affordable mobile POS system, Square offers card readers and robust payment terminals, enabling merchants to accept card payments both in person and online. It easily blends with WooCommerce platforms, making it a comprehensive payment system for businesses of various sizes.

PayPal

PayPal continues to be a prominent player in the online payment system, catering to both large and small enterprises. It is a preferred choice for businesses with an online and offline presence. PayPal provides robust buyer protection, mobile payments, and recurring billing, which is advantageous for both enterprises and consumers.

Conclusion

Versatility is the name of the game in today’s heightened competition and nuanced consumer behaviour. A suitable payment system for small businesses can help your organisation stay ahead of the curve. By deploying a vast range of payment options like QR code payments, mobile POS, and modern retail POS systems, enterprises are streamlining their operations and adding a different dimension to the customer experience.

With artificial intelligence (AI) and machine learning (ML) touching various aspects of the retail business, we can expect more technological advancement in the realm of payment systems in times to come.

Sakkun Tickoo is the Digital Marketing Director at Wonderful Payments Ltd. Wonderful Payments delivers online payment solutions powered by open banking for ecommerce stores and in-person POS transactions for small businesses in the UK.